Feds Drop Campaign Finance Charge Against SBF

Federal prosecutors have dropped the marketing campaign finance violation cost towards FTX founder Sam Bankman-Fried, after The Bahamas informed the United States that it by no means deliberate to extradite SBF on marketing campaign finance violations – which the DOJ now says would violate ‘its treaty obligations to The Bahamas.’

“The Government has been informed that The Bahamas notified the United States earlier today that The Bahamas did not intend to extradite the defendant on the campaign contributions count,” US Attorney Damian Williams wrote in a Wednesday night time letter submitting to drop the cost. “Accordingly, in keeping with its treaty obligations to The Bahamas, the Government does not intend to proceed to trial on the campaign contributions count.”

The submitting was made hours after Judge Lewis A. Kaplan positioned a gag order on SBF after prosecutors accused him of leaking the private writings of former girlfriend and enterprise associate, Caroline Ellison.

Recall that SBF was charged with fraud and marketing campaign finance violations following the collapse of his crypto trade. He was extradited from the Bahamas to face trial in a US federal court docket, and has been out on a $250 million bond whereas awaiting trial. SBF was notably accused of making over 300 political contributions to the tune of tens of tens of millions of {dollars} by straw donors and utilizing company funds.

“Bankman-Fried’s use of straw donors allowed him to evade contribution limits on individual donations to candidates to whom he had already donated,” reads a superseding indictment.

New: superseding indictment fees Sam Bankman-Fried with 12 counts, consists of new particulars about alleged marketing campaign donation fraud.

SBF and cohort made greater than 300 donations totaling tens of tens of millions of {dollars}, feds allege —> pic.twitter.com/XM9niJAcBZ

— Ben Feuerherd (@benfeuerherd) February 23, 2023

SBF nonetheless faces seven fees in October regarding fraud, journalist Mario Nawfal notes.

These embody defrauding prospects and lenders of FTX. It is alleged that SBF siphoned billions of {dollars} that prospects had deposited with FTX. Other fees could but lead to an extra trial, however problems come up from litigation within the Bahamas over the extradition, which have to be concluded earlier than the US authorities can proceed. If convicted on the securities fraud and wire fraud fees, SBF faces the prospect of being sentenced to dozens of years in jail.

🚨BREAKING: PROSECUTORS DROP CAMPAIGN FINANCE CHARGE AGAINST FTX’S SAM BANKMAN-FRIED

Federal prosecutors are dropping the cost that SBF violated marketing campaign finance guidelines.

SBF was charged with fraud and marketing campaign finance violations after the sudden collapse of FTX, a crypto… pic.twitter.com/YvMlRmjwr0

— Mario Nawfal (@MarioNawfal) July 27, 2023